US markets extended losses as rising oil prices and a sharp sell-off in tech stocks weighed on sentiment , overshadowing dovish signals from the Federal Reserve. Key Market Moves S&P 500 fell 0.4% to 6,343.72 Nasdaq dropped 0.7% to 20,794.64 Dow Jones rose 0.1% to 45,216.14 Key takeaway: Tech weakness and oil-driven inflation fears are dragging the broader market lower. What’s Driving the Sell-Off? 1. Oil Prices Surge Again Crude oil jumped over 5% to around US$105 Driven by ongoing US–Iran–Israel conflict Higher oil = higher inflation risk = pressure on equities 2. Tech Stocks Lead the Decline Heavy losses in AI, chip, and data-related names: Applied Digital : -13.5% AXT Inc : -13% Micron Technology : -9.9% Arm Holdings : -5% Intel : -4.5% Super Micro Computer : -4.1% AI and semiconductor stocks are facing profit-taking and valuation concerns 3. Fed Comments Not Enough to Lift Sentiment Jerome Powell signaled no immediate rate hikes despite rising energy pri...
Singapore markets opened marginally higher, but underlying sentiment remains cautious as Middle East tensions threaten economic growth and inflation stability.
Market Holds Steady Despite Rising Risks
The FTSE Singapore Straits Times Index edged up 0.05% to 4,899.83, reflecting a balanced market tone:
- Advancers: 57 | Decliners: 47
- Trading activity remained relatively muted
This suggests investors are waiting for clearer macro signals amid global uncertainty.
Global Headwinds: Oil and Tech Weigh on US Markets
On Wall Street, markets were mixed:
- Nasdaq Composite Index fell 0.7%
- S&P 500 Index declined 0.4%
- Dow Jones Industrial Average rose 0.1%
Losses in technology stocks and rising oil prices offset relatively dovish comments from Jerome Powell, who signalled no immediate need for rate hikes.
Singapore Growth Outlook Faces Downside Risks
RHB flagged rising downside risks to Singapore’s GDP growth, currently projected at ~3.0% for 2026.
Key concerns include:
- Energy supply disruptions
- Rising import costs and inflation
- Potential slowdown in global trade activity
Singapore’s heavy reliance on imported energy makes it particularly vulnerable to prolonged oil shocks.
Inflation Risks and Industrial Outlook
- Headline and core inflation projected at ~1.5%, but risks are tilted upward
- Industrial production forecast remains at 4.0% growth, though subject to geopolitical developments
A prolonged conflict could derail both growth and inflation stability.
Domestic Bright Spots Remain
Despite macro risks, parts of the economy show resilience:
- Retail sector stable, supported by domestic demand and tourism recovery
- Prime retail rents steady, with vacancy rates below 5%
However, rising medical cost inflation (16.9% projected for 2026) adds pressure on household spending.
Stock to Watch
- OUE Limited (LJ3.SG) flagged potential material adjustments to its FY2025 results, including a ~S$58 million reduction in losses from associates.
Investor Takeaways
- Singapore markets remain resilient but cautious, with STI slightly higher.
- Oil-driven inflation risks could pressure GDP growth (~3% forecast).
- Global markets are mixed, with tech weakness offsetting dovish Fed signals.
- Domestic sectors like retail remain stable, offering some support.
- Investors should monitor energy prices and geopolitical developments closely.
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